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Shell PLC has agreed to sell its 16.67 percent stake in the North West Shelf (NWS) Project, which produces liquefied natural gas (LNG) and domestic gas in Western Australia, to Abu Dhabi National Oil Co PJSC (ADNOC).
XRG PJSC, ADNOC’s international investment arm, will pay at least $1.45 billion and “an additional milestone-linked contingent payment”, the British company said in a press release Tuesday.
“The sale realizes value from a mature, non-operated asset and supports Shell’s strategy by focusing investment on advantaged integrated gas positions, as NWS transitions in the future towards a third-party toll-processing model”, said Shell Integrated Gas president Cederic Cremers.
Shell added, “Shell continues to invest in LNG and integrated gas globally and will grow LNG sales by four to five percent per year to 2030”.
The parties expect to complete the transaction next year subject to regulatory approvals and other conditions.
NWS processes output from the Angel, Goodwyn, North Rankin, Perseus and Searipple fields from the offshore Northern Carnarvon Basin into LNG, liquefied petroleum gas, domestic gas and condensate at the onshore Karratha Gas Plant.
NWS has a liquefaction capacity of 14.3 million metric tons per annum (MMtpa), reduced from 16.9 MMtpa after Woodside retired one of the project’s five trains in 2025. The project also has two domestic gas processing trains, according to Woodside.
Earlier BP PLC agreed to sell part of its stake to a related project, the planned Browse to North West Shelf Project or the Browse Project, to Osaka Gas Co Ltd and South Korea’s GS Energy Corp. The Browse Project would develop new fields in the namesake basin, connect them via a new pipeline of about 900 kilometers (approximately 560 miles) to the existing infrastructure in Karratha and add two floating production, storage and offloading facilities, according to Woodside. Shell had already exited the Browse Project in 2023.
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Meanwhile Chevron Corp and Woodside Energy Group Ltd have yet to announce the completion of a swap transaction initiated late 2024 involving the NWS and several other Australian projects.
Chevron is to transfer to the Australian company its 16.67 percent ownership in the NWS project, resulting in operator Woodside owning 50 percent.
According to its 2026 third quarter report, Woodside continues to expect the swap transaction to be completed by yearend.
“Hearings on three legal proceedings in the Federal Court of Australia associated with the NWS Project Extension Commonwealth environmental approvals were held in July 2026, with the decisions reserved”, said the Q3 report October 21.
“A separate proceeding concerning the State environmental approval remains before the Supreme Court of Western Australia, with a hearing scheduled for Q4 2026.
“The NWS Project is continuing with infrastructure retirement planning at Karratha Gas Plant while maintaining the capacity to provide processing services for third-party gas.
“Planning is underway to retire a second LNG train in 2027 subject to relevant approvals”.
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Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
